The Minister of Economy and Competitiveness, Luis de Guindos, has informed the Council of Ministers of the approval by the Government's Delegate Commission for Economic Affairs of a line of direct financing to the Autonomous Communities by the Official Credit Institute ( ICO) within the framework of the new budget stability regulations.
This line is endowed with 10,000 million euros (expandable to 15,000 upon agreement of the Delegate Committee). The objective is to provide financial support to the Autonomous Communities subject to compliance with the objectives of fiscal discipline and a market interest rate. The line covers two sections
The first allows financing to the Autonomous Communities for the payment of outstanding obligations associated with the maturity of the autonomous financial debt contracted prior to January 1, 2012 and whose maturity occurs before June 30, 2012 (refinancing tranche).
The second provides liquidity to the Autonomous Communities for the cancellation of their obligations pending payment with their suppliers, derived from the acquisition of supplies, execution of works or provision of services.
Only obligations that have been previously accounted for as a deficit of the respective Autonomous Communities (supplier section) may be financed.